Case Studies Allied Electronics Automates Trade Compliance as Global Sales Grow

Edit This Case Study Record

	Allied Electronics Automates Trade Compliance as Global Sales Grow

Allied Electronics Automates Trade Compliance as Global Sales Grow

Technology Category	Application Infrastructure & Middleware - Data Exchange & Integration Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Industries	Electronics Professional Service
Applicable Functions	Business Operation Logistics & Transportation
Use Cases	Regulatory Compliance Monitoring Supply Chain Visibility Track & Trace of Assets
Services	Software Design & Engineering Services System Integration
Challenge	Allied Electronics made a concerted effort to focus on trade compliance, citing increased regulatory complexity and policing of regulations, competitors developing new capabilities, higher customer and supplier expectations and the shifting sanction/embargo environment. The Allied Director of Quality & Compliance stated that “Allied is fully committed to trade compliance and, as a company with a large volume and high tempo customer service business model, required a robust and scalable automated solution to support the business as it grows and expands internationally.” Read More
About Customer	Allied Electronics & Automation® is a high service level authorized distributor of industrial automation products, electronic components and electromechanical products. Originally established as the radio parts distribution arm of Columbia Radio Corporation in 1928, Allied Electronics has grown to become a major electronics distributor with an extensive international profile. As a subsidiary of Electrocomponents plc (LSE: ECM), Allied has expanded on its local, personal focus and added a global presence to its customer orientation. Add to this a record of excellent service, combined with 99.9% order and shipping accuracy, and you have a powerful supply chain that meets customer demands. Read More
Solution	The export management system from Amber Road®, now part of e2open®, was selected over the SAP® Global Trade Services application. Adding more robust trade compliance capabilities, the enterprise-wide platform automates the necessary export compliance checks and transactional functions including country controls, restricted party screening (RPS), license determination and tracking, document generation, and filing. Read More Log in to view content
Contents

Technology Category

Application Infrastructure & Middleware - Data Exchange & Integration

Functional Applications - Enterprise Resource Planning Systems (ERP)

Applicable Industries

Electronics

Professional Service

Applicable Functions

Business Operation

Logistics & Transportation

Use Cases

Regulatory Compliance Monitoring

Supply Chain Visibility

Track & Trace of Assets

Services

Software Design & Engineering Services

System Integration

Challenge

Allied Electronics made a concerted effort to focus on trade compliance, citing increased regulatory complexity and policing of regulations, competitors developing new capabilities, higher customer and supplier expectations and the shifting sanction/embargo environment. The Allied Director of Quality & Compliance stated that “Allied is fully committed to trade compliance and, as a company with a large volume and high tempo customer service business model, required a robust and scalable automated solution to support the business as it grows and expands internationally.”

About Customer

Allied Electronics & Automation® is a high service level authorized distributor of industrial automation products, electronic components and electromechanical products. Originally established as the radio parts distribution arm of Columbia Radio Corporation in 1928, Allied Electronics has grown to become a major electronics distributor with an extensive international profile. As a subsidiary of Electrocomponents plc (LSE: ECM), Allied has expanded on its local, personal focus and added a global presence to its customer orientation. Add to this a record of excellent service, combined with 99.9% order and shipping accuracy, and you have a powerful supply chain that meets customer demands.

Solution

The export management system from Amber Road®, now part of e2open®, was selected over the SAP® Global Trade Services application. Adding more robust trade compliance capabilities, the enterprise-wide platform automates the necessary export compliance checks and transactional functions including country controls, restricted party screening (RPS), license determination and tracking, document generation, and filing.

Impact #1	With the new system, the company has made huge strides in trade compliance automation. Overall, executives point out the cultural and business process transformations that have made a dramatic difference in the company’s ability to grow its sales globally.
Impact #2	Products can be shipped to customers faster without the delays from manual screening, improving the company’s “on-time promise” service level agreement. A reduction from three days to same-day service has been realized, also adding to man-hour savings on the distribution center (DC) floor and headcount re-allocation to handle the increased volumes of shipments.
Impact #3	Some of the products Allied sells fall under the jurisdiction of the International Traffic in Arms Regulations (ITAR). With the ability to identify and manage these highly controlled products through proper automated processes, along with the automation of screening, the company is now able to sell products domestically and internationally that fall into these categories with complete confidence of compliance. This has facilitated the expansion of the company’s product portfolio by adding additional products. This also gives suppliers and customers the ability to work with a single provider, making it an important feature in this competitive space and a revenue generator for the company.

Impact #1

With the new system, the company has made huge strides in trade compliance automation. Overall, executives point out the cultural and business process transformations that have made a dramatic difference in the company’s ability to grow its sales globally.

Impact #2

Products can be shipped to customers faster without the delays from manual screening, improving the company’s “on-time promise” service level agreement. A reduction from three days to same-day service has been realized, also adding to man-hour savings on the distribution center (DC) floor and headcount re-allocation to handle the increased volumes of shipments.

Impact #3

Some of the products Allied sells fall under the jurisdiction of the International Traffic in Arms Regulations (ITAR). With the ability to identify and manage these highly controlled products through proper automated processes, along with the automation of screening, the company is now able to sell products domestically and internationally that fall into these categories with complete confidence of compliance. This has facilitated the expansion of the company’s product portfolio by adding additional products. This also gives suppliers and customers the ability to work with a single provider, making it an important feature in this competitive space and a revenue generator for the company.

Benefit #1	Prior to implementing the system, export screening was only performed on about 10% of the outgoing shipments via manual processes. Today, 100% of all international and about 90% of the domestic shipments are screened.

Benefit #1

Prior to implementing the system, export screening was only performed on about 10% of the outgoing shipments via manual processes. Today, 100% of all international and about 90% of the domestic shipments are screened.

Download PDF Version

Overview

Allied Electronics Automates Trade Compliance as Global Sales Grow

Operational Impact

Quantitative Benefit